Australia’s Treasury to Include Stablecoin Rules in Crypto Bill Draft, ASIC’s Warning For Crypto Entities

As a seasoned crypto investor, I’m keeping a close eye on regulatory developments in various jurisdictions around the world. The latest news coming out of Australia is particularly noteworthy as their regulators are making strides towards regulating stablecoins. This is an important step forward for the industry as stablecoins have become increasingly popular and widespread.

Australia’s regulatory bodies have shared scant information about their strategies regarding the digital asset industry. They announced plans to release a proposed stablecoin framework and signaled increased action against unauthorized businesses during a Sydney seminar on Wednesday.

The digital assets conference, titled “Digital Assets: Founding the Digital Economy,” was orchestrated by Blockchain Australia, which serves as the country’s primary advocacy group for the industry.

Australia’s Treasury has earlier indicated intentions to unveil a draft bill governing the licensing and safekeeping requirements for crypto asset service providers by the year-end in 2024. This upcoming regulation may encompass a structure to oversee stablecoins as well.

As an analyst, I can tell you that the digital asset platform reforms have been given priority by The Office of Parliamentary Counsel for drafting and eventual publication as laws in Australia. This means we can expect to see a exposure draft of these reforms released before the end of this year.

In the allotted timeframe for drafting legislative proposals, several reforms are being considered, each with distinct importance relative to payments reforms. Our suggested regulatory structure for stablecoins also falls under this umbrella. The plan is to implement these reforms sequentially. Due to the intersection of these topics, representatives are optimistic that they will be presented simultaneously.

The Australian Securities and Investments Commission (ASIC) announced that it is collaborating with the government by offering consultative guidance on matters related to digital assets, and engaging in frequent discussions with regulatory bodies from the EU, Singapore, Malaysia, Hong Kong, and North America to deepen their understanding of ongoing cases against digital asset companies.

As a senior analyst at ASIC’s digital assets division, I personally engage in constant surveillance of international cases and maintain frequent communication with our counterparts abroad. This morning, for instance, I had an enlightening hour-long conversation with the SEC about their ongoing projects and the potential insights we could gain from them. To date, we have handled over half a dozen cases involving digital assets and crypto currencies, and there are more on the horizon.

The ASIC representative acknowledged that they will offer guidance but stressed the importance of complying with existing laws. They warned crypto entities to align themselves with the legal precedents set by recent cases the ASIC has initiated against crypto companies in front of industry attendees.

“When did you last review the tokens that you list on your platform? When was the last time you reviewed the products and services that you are making available? How recently have you consulted with your lawyers about where the law currently sees the most current understanding based on cases over the last six months or so. If you haven’t done that in the last four months you need to consider where you are,” Bollen said.

As a crypto investor, I’ve noticed that ASIC (Australian Securities and Investments Commission) has shown interest in recent court rulings that have supported crypto entities like Block Earner and BPS Financial Pty Ltd (BPS). However, I can’t ignore the fact that ASIC has taken legal action against Binance Australia and social investing platform eToro. Moreover, some major Australian banks have imposed limitations on cryptocurrencies due to concerns over potential scams.

As a researcher studying the Australian tech industry, I’ve come across an intriguing update: Blockchain Australia, a prominent organization promoting blockchain technology in the Land Down Under, has undergone a rebranding process and is now known as the Digital Economy Council of Australia (DECA). An exciting development for this evolving sector is the inclusion of a new membership category specifically designed for banks.